Yes, you can get help with housing costs while working — but the route depends on whether you are working-age or over State Pension age. The rules changed significantly when Universal Credit replaced Housing Benefit for working-age claimants.
Here is how it works in 2026/27.
Working Age (Under 66): Universal Credit Housing Element
If you are under State Pension age, you cannot make a new Housing Benefit claim. Instead, help with rent comes through the housing element of Universal Credit (UC).
The UC housing element is available to renters (private and social housing) and covers:
- Private tenants: up to the Local Housing Allowance (LHA) rate for your area
- Social tenants: full eligible rent (subject to bedroom tax if you have spare rooms)
How Earnings Affect the Housing Element
| Stage | What happens |
|---|---|
| Earnings up to work allowance | UC (including housing) not reduced |
| Earnings above work allowance | UC reduced by 55p per £1 of net earnings |
| Earnings high enough | UC reduces to zero; housing element included |
Work allowances 2026/27:
- £673/month — if your UC includes a housing element (i.e. you pay rent)
- £404/month — if your UC does not include a housing element (e.g. you own your home)
Only households with a child or a limited capability for work receive a work allowance. If neither applies to your household, there is no work allowance and the 55% taper starts from the first pound of earnings.
Example: Full-Time Worker on UC with Rent
Marcus works full-time and earns £2,000/month net. His UC housing element is £700/month (his LHA rate).
- No UC work allowance (no children, no disability)
- UC reduced by 55% of £2,000 = £1,100
- His UC housing element (£700) is absorbed by this reduction
- Result: £0 UC housing element at his income level
At £2,000/month net earnings with no work allowance, UC typically tapers to zero. If Marcus had a child, his work allowance (£673) would mean UC only tapers on £1,327 of net earnings (£1,327 × 55% = £730 reduction), meaning his £700 housing element might survive.
Pension Age (66+): Housing Benefit Direct from Council
If you are over State Pension age, Housing Benefit is still available directly from your local council. Working does not stop you claiming — Housing Benefit is means-tested, so higher earnings reduce (but do not automatically eliminate) your award.
Housing Benefit pensioner rules:
- Applied for through your local council
- Means-tested against income (including earnings) and capital (savings above £10,000 reduce the award; above £16,000 you generally cannot claim)
- Earnings are assessed as income and reduce the award gradually
- There is no earnings cut-off — even pensioners with modest part-time earnings may receive some Housing Benefit
Example: Pension-Age Part-Time Worker
Barbara is 68 and works 12 hours/week earning £600/month. Her State Pension and earnings together are assessed against her eligible rent. Her council applies a means test — with pension and part-time earnings combined, her Housing Benefit may be reduced but not eliminated.
Local Housing Allowance (LHA) Rates
Private renters are limited to the LHA rate for their Broad Rental Market Area (BRMA). LHA rates are set by the Rent Officer and vary significantly by region. You can check your area’s LHA rate on the Valuation Office Agency website.
If your rent exceeds the LHA, you must cover the difference yourself — Housing Benefit or UC will not make up the shortfall.
What to Do If You Work and Need Help With Rent
- Under 66: Apply for Universal Credit at gov.uk/universal-credit — the housing element is included automatically if you pay rent
- 66 or over: Contact your local council’s housing benefit team; apply online or by phone
- Check LHA rates for your area before applying — know what maximum award is possible
- Recalculate if your hours or pay changes — report changes promptly to avoid overpayments
For more on UC, see our Universal Credit guide. For pension-age housing help, see our Pension Credit guide and Housing Benefit guide.